As part of the transaction, Wipro will sign a master services agreement for the delivery of technology information service and Application Development and Maintainance (ADM) services for a period of six years worth at least $500 million, it said in a statement.

The acquisition of CTS enables Wipro bag Citigroup as a key client and providing TIS and domain led services to all Citi business segments. A successful acquisition of CTS will strengthen the infrastructure and facilities management business of Wipro. Citi Technology services has strong expertise in ADM for cards, capital markets and corporate banking.

This move would also help Citi in cutting down its employee strength. Citos employs close to 2,500 people and has offices in Mumbai and Chennai. The U.S. banking giant had earlier said that it is looking at cutting down 15% of its employee base or 52,000 employees in the next one year.

This is the second time that Citi, will sell off its Indian back-office operations. In early October, it had sold its captive BPO Citigroup Global Services (CGSL) to Tata Consultancy Services for $505 million.

The transaction is expected to be closed by March 2009, subject to regulatory approvals.